What is AOV?
AOV, or average order value, is the average amount a customer spends each time they place an order. To find it, divide your total revenue by the number of orders in the same period.
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How to calculate AOV
Divide your total revenue by the number of orders it came from.
Why AOV matters
AOV shows how much each order is worth. If it rises while your traffic and conversion rate hold steady, you earn more from the same marketing spend.
It also sets a limit on what you can afford to pay for a customer. A higher AOV gives you more room to spend on ads and still make money.
Ways to raise AOV
Common tactics include product bundles, free shipping thresholds, upsells, cross-sells, and volume discounts. Each one gives shoppers a reason to add one more item to the cart.
Test each change on its own. A tactic that lifts AOV but cuts your conversion rate may leave total revenue lower than before.
What AOV can hide
AOV is an average, so a few very large orders can pull it up and hide a lot of small ones. Look at the spread of order sizes, or split AOV by channel and customer type, before you act on it.
Disclaimer
This calculator is for informational purposes only, and we don't guarantee the accuracy of its results. You're responsible for verifying any results before relying on them. See our terms of use.
Common questions
How do you calculate AOV?
Divide total revenue by the number of orders. For example, $50,000 in revenue from 1,000 orders gives an AOV of $50.
What is a good AOV?
It depends on your products, your prices, and your margins. Compare your AOV with your own history and with your cost to acquire a customer, and look for steady improvement.
Is AOV the same as revenue per visitor?
No. AOV only counts people who bought, while revenue per visitor divides revenue across all visitors, including those who left without buying.
Should AOV include shipping and tax?
Pick one approach and use it every time. Many teams leave out tax and shipping so AOV reflects the value of the products sold, but the right choice depends on how you report revenue.
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